Just How Much Do Intraday Traders Earn?

It is difficult to answer the question of how much income traders earn during the day, not only because the solution will differ from trader to trader, but also because the vast majority of traders never publicly disclose their income in the same way as this is done by representatives of other professions. do (while I disclose my verified investment results because transparency is critical to me). Thus, although most people have a very general idea of ​​the diversity of income of a lawyer or teacher, the income level of a professional day trader remains shrouded in thriller. Before I talk about the amount that an experienced trader usually earns, it is important to note that this post does not pretend to be definitive, but only focuses on work experience. Your results as a day trader will depend on your talent, your account size, the instruments you trade, and a host of other elements. Let's start with a key issue when estimating the average day trader's cash flow: survival bias.

The Problem of the Basis of Survival

Survivor bias refers to the distortion of results that comes from focusing only on people who have definitely survived the opening curve of a trade on a business day. Although the exact amounts vary from study to test, most traders fail just before becoming profitable. Therefore, a study of the average income of today's traders cannot take into account the men and women who have failed in investing during the work day and are now choosing other professions. Having said that, I will give you an idea of ​​the possible profit ranges for experienced intraday traders by dividing traders into different levels of talent, similar to how a major league baseball works.

lovers

Level 1 traders are like amateur baseball players in that they currently don't really earn enough income for a trader to fully support their lifestyle. I characterize any trader making less than $50,000 a year as a beginner. While each individual trader should start at this time, the newbie is often temporary; if a trader is still stuck in a trap at this time, he is likely to make a career sooner or later.

Little leagues

These traders have demonstrated the confidence and talent to enter the leading trading leagues. Any day trader making between $50,000 and $100,000 a year could be considered a minor league player. Traders in this class tend to have reliable elementary methods as well as an approach they are confident in. To move to the next level, you will need to introduce additional trade sizes and include many more methods to diversify your investments.

Important league members

These traders have crushed the percentages and they consistently produce six figures a year, putting them in the big leagues. Any day trader producing between $100,000 and $500,000 falls into this class. These traders buy and sell more than the minor leaguers and are usually more experienced as well.

All Stars

Day trading stars consistently earn between $500,000 and $1,000,000 in a calendar year. These traders have exceptional elementary experience and benefit from a variety of trading tactics, and also tend to have some ingenuity and market intuition that other traders do not have.

Hall of Fame

Simply put, they are the most profitable intraday traders on the planet, they typically make around $1 million in a calendar year on a regular basis. These traders usually have at least 5 years of knowledge and invest fairly large positions compared to other traders. Very few day traders achieve this amount.

Conclusion

While the profits of an experienced intraday trader can definitely vary considerably, the above types should give you a general idea of ​​the amount a trader would earn on a daily basis for a given amount of talent. It is imperative that you remember that just as every baseball player started in junior high to hone their skills, traders must also work on their abilities before becoming the cream of the crop. As you can see, the cash reward for becoming an elite day trader is impressive.